Pandemic and tax code change spur interest in life insurance, says JD Power
TROY, Michigan – (COMMERCIAL THREAD) – The adage that “life insurance is sold, not bought” may have found its place in the double blow of the COVID-19 pandemic and a change in the federal tax code that allows policyholders to create more cash value in their projects. According to the JD Power 2021 study of individual life insurance in the United States,SM released today, increased client awareness of their own mortality, combined with the ability to place assets in a tax-efficient plan, helps increase client interest and satisfaction in life insurance plans.
“Life insurance ownership has declined over the past 30 years and overall customer satisfaction with life insurance has historically deteriorated steadily from the time it is purchased,” said Robert M. Lajdziak, Senior Insurance Intelligence Consultant at JD Power. “Everything is starting to change. This is a huge opportunity for insurers who have mastered the formula of client engagement and education. With the spotlight on the industry more than ever, insurers who differentiate themselves with simple points of contact, close alignment with client goals and clear communications are well suited to seize the opportunity to create lifelong value. significant.
Here are some of the key findings from the 2021 study:
- Customer satisfaction in life insurance is exploding: The overall customer satisfaction score for life insurance providers is 776 (on a 1,000 point scale), up 13 points from 2020 as customers’ interest in insurance increases. -life increases. While most clients buy life insurance to cover their final expenses and leave money for the beneficiaries, 18% use the policies to protect their retirement income and 9% use them for tax planning purposes.
- The agent / advisor relationship is the key to satisfaction and advocacy, but the score is often missed: Five key characteristics of the agent / advisor-client relationship drive overall satisfaction and advocacy: helping clients understand the policy; understand clients’ goals; work as a team; make recommendations in the best interest of the client; and take action with a long term relationship in mind. When these criteria are met, brand satisfaction and promotion skyrocket. However, only 34% of agents / advisers meet all of these criteria today.
- Website more important than ever: Insurer websites are the most frequently used communication channel for life insurance clients, with 40% of them now using their insurer’s website for services ranging from finding information on policies to access their account and payments. Overall customer satisfaction with life insurance websites climbs 24 points this year to 844.
- Communications upgrade: Overall client satisfaction increases by 50 points when clients recall receiving a single communication from their life insurance provider in the past 12 months, but only 53% of clients report receiving such communications. Further down the proactive communication continuum, among those who receive communication by email, customer satisfaction increases by 81 points and among those who receive communications tailored to their specific needs, satisfaction increases by 172 points.
Ranking of studies
State farm ranks highest among individual life insurance providers with a score of 822. At national scale (813) ranks second and North West Mutual (807) ranks third.
The 2021 United States Individual Life Insurance Study measures the experiences of clients of the largest individual life insurance companies in the United States. The study measures overall customer satisfaction based on the performance of five factors (in alphabetical order): communication; interaction; the price; product offerings; and statements.
The 2021 study is based on responses from 4,625 individual life insurance clients and was conducted in June-July 2021.
For more information on the US Individual Life Insurance Study, visit https://www.jdpower.com/business/healthcare/us-individual-life-insurance-study.
To view the press release online, please visit http://www.jdpower.com/pr-id/2021136.
About JD Power
JD Power is a global leader in consumer information, advisory services, data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has for more than 50 years provided incisive industrial intelligence on customer interactions with brands and products. The world’s largest companies in major industries trust JD Power to guide their customer-centric strategies.
JD Power has offices in North America, Europe and Asia-Pacific. To learn more about the company’s commercial offerings, visit JDPower.com/business. The JD Power automatic purchase tool is available at JDPower.com.
About JD Power and advertising / promotional rules: www.jdpower.com/business/about-us/press-release-info